The euro area will not have a centralised budget and smoothing of country-specific asymmetric shocks via private …

is described using a stochastic regime-switching model; second, the euro area governments’ responses to uncertain … macroeconomic policies in Greece are considered. The model's mechanism and assumptions allow either for a Grexit from the euro area … understand key drivers of the long-winded negotiations between the Syiza government and the euro area governments. …

In this paper, sound public finances under the euro means sustainability in the long term instead of short- and medium …-term fiscal discipline. The challenges to sustainability are identified for the four largest euro area member states, and several … resort for a euro area government under liquidity shortage to prevent it from developing into a general financial crisis …

no evidence of a euro effect on trade flows among early euro adopters up to the year 2002. Second, this finding is robust … to extending the sample period to incorporate data up to 2013, covering five additional euro accessions. Third, while … there is no robust evidence of a euro effect, there is evidence that intra-EU trade flows have expanded faster than the …

Poland is obligated to adopt the euro after the fulfilment, inter alia, of the exchange rate criterion which requires … estimate real Polish zloty/euro equilibrium rate. Although the main goal of our analysis is to compute measures of current and …